By Sheri Kasprzak
New York, May 24 - Northern Star Mining Corp. settled its previously announced private placement for C$14.3 million after the greenshoe was exercised.
The company sold a total of 13 million units at C$1.10 apiece, including the over-allotment option for 3 million units exercised by a syndicate of underwriters led by MGI Securities Inc.
The units consist of one share and one half-share warrant with each whole warrant exercisable at C$1.40 for two years.
The expiry will be accelerated to 30 days if the volume weighted average price of the company's stock is more than C$2.20 for 10 consecutive trading days.
The syndicate also included Orion Securities Inc.
The deal priced on May 4 as a C$11 million offering of 10 million units.
Proceeds will be used for development and exploration on the company's Midway gold project in Quebec and for working capital.
Vancouver, B.C.-based Northern Star is a gold exploration company.
| Issuer: | Northern Star Mining Corp.
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| Issue: | Units of one share and one half-share warrant
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| Amount: | C$14.3 million
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| Units: | 13 million (includes greenshoe for 3 million units)
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| Price: | C$1.10
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | Two years
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| Warrant strike price: | C$1.40
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| Underwriters: | MGI Securities Inc. (lead); Orion Securities Inc.
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| Pricing date: | May 4
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| Settlement date: | May 24
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| Stock symbol: | TSX Venture: NSM
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| Stock price: | C$1.30 at close May 4
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| Stock price: | C$1.11 at close May 24
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